One explanation for declining personal property values is the tax base may be narrowing. But from 1992 to 2003, Utah had no legislation to narrow the personal property tax base.

Also a comparison of personal property value growth with personal income growth - an indicator for economic expansion - does not provide conclusive evidence that the tax base is eroding.

Another concern that business personal property taxes raises is that of horizontal equity. Businesses with similar income levels may be paying significantly different amounts of personal property tax. If the assumption that manufacturing businesses utilize more personal property than service businesses, then a manufacturing business will end up paying more taxes than a service business that makes a similar profit. However, property taxes, in principle, are supposed to be a tax on wealth, and businesses that hold more assets may have more value than businesses with fewer assets, even if their profits are similar.

Currently, 39 states and the District of Columbia continue to tax personal property. As of 1992, according to John Mikesell, 16 states continue to tax business inventory and eight continue to tax intangible personal property. Utah taxes neither business inventory nor intangible property. Intangible personal property includes stocks, bonds, and franchises. Most states have eliminated taxes on intangible personal property because the tax is very difficult to administer. According to Cornia and Wheeler, most states have eliminated inventory taxes because they can cause competitive disadvantages for businesses that often ship goods to other states.

While the personal property tax on businesses only constitutes 6.3% of total property tax revenues, eliminating the tax would mean a loss of over $100 million in revenue for local governments and schools in Utah. However, if the personal property tax base continues to erode and real property values continue to rise, the personal property tax will play a smaller and smaller role in financing government and schools. The factors along with questions of administration, compliance and equity must be considered when discussing the business personal property tax in Utah, concluded the foundation researchers.